Pump owners association 'hails' govt's decision to raise fuel prices

A representative from an owners’ association says that illegal stockpiling of fuel is expected to ease as prices increase

A section of petrol pump owners have welcomed the government’s decision to increase the price of fuel oil.

Adjusting prices in line with rising global market prices will reduce stockpiling and bring about greater transparency in sales, said Bangladesh Petrol Pump Owners Association Member Secretary Mir Ahsan Uddin Parvez on Sunday.

Afterwards, Parvez told bdnews24.com that the unusual queues seen at pumps despite the increase in supply had led the association to believe that a group was hoarding oil beyond the amount necessary. He said the raised prices may cause that trend to decline.

The government supplied more oil in March this year compared to last year, he said. Despite this, long queues of motorcycles, cars and other vehicles were commonly seen at petrol pumps.

This seemed unusual to pump owners, Parvez said.

He said, "There were complaints of hoarding at various places, and law enforcing agencies have also conducted operations to recover oil. We feel that a section of people were hoarding oil in their homes beyond their actual demand. At least that trend will decline somewhat as a result of the price adjustment."

Parvez also claimed that pump owners do not have the opportunity to hoard.

He said, “Pump owners do not have the opportunity to stockpile. When the government calculates how many days of oil is in the country, the amount of oil in the underground tanks of petrol pumps across the country is also taken into account, along with the stocks of Padma, Meghna and Jamuna. The amount of oil that can be kept in pumps also follows the government’s rules.”

The business leader said he could not yet specify pump owners’ commission has been adjusted by increasing the price.

Parvez said, “First we have to calculate it by comparing it with various expenses, licence fees and other expenses. Then we can say how much this adjustment has matched our previous demands.”

Parvez said that the current membership of the Bangladesh Petrol Pump Owners Association is “about more than 1,000,” and there are currently 2,298 petrol pumps operating across the country.

The government announced new prices for four types of fuel oil on Saturday night, which then took effect effect from Sunday. Under the new pricing structure, diesel will now cost Tk 115 per litre, while kerosene has been set at Tk 130. The price of octane has surged to Tk 140 per litre, and petrol will be sold at Tk 135.

In early April, the government decided to maintain the fuel prices for March. As tensions in the Middle East continue to simmer, and import costs continue to rise alongside rising prices in the world market, the government decided to announce the price hikes in a single blow.

In recent weeks, long queues for fuel oil have been seen in many parts of the country, including the capital. The government repeatedly said at the time that there was no shortage of oil in the country and that, on the contrary, supply had increased compared to last year. The state minister for energy also stated in parliament that although the actual demand has not increased, there has been a tendency for people to “buy more than necessary".

The Ministry of Power, Energy, and Mineral Resources also said in a press conference that despite the war in the Middle East and import complications, there will be no fuel shortage in the country over the next two months. At the same time, the government also announced the introduction and expansion of the “Fuel Pass” system, promising to bring discipline and transparency to the sale of oil.